A trust indenture and a bond indenture are related but not the same. A bond indenture is the legal contract between the bond issuer and bondholders. It spells out the terms of the bond, such as interest rate, maturity date, repayment schedule, covenants, and rights of both the issuer and investors. Essentially, it is the agreement that governs the bond itself and defines the obligations of the company toward its investors.

A trust indenture, on the other hand, goes a step further by involving a third party known as the trustee, usually a bank or financial institution. The trustee acts on behalf of the bondholders to ensure the issuer follows the bond terms. Trust indentures are most common in the U.S. for corporate bonds, as required by the Trust Indenture Act of 1939, which mandates that debt issues above a certain size must have an appointed trustee.

The key difference is that a bond indenture is a direct contract between the issuer and investors, while a trust indenture adds a trustee to oversee and enforce the agreement. This provides an extra layer of protection for bondholders, ensuring fair treatment and proper handling of defaults or disputes.